San Diego  A nonprofit that has come under fire for the way it manages money from parking meters in Bankers Hill, Hillcrest and other Uptown communities has three months to execute a series of reforms, under on a deal endorsed Tuesday by the San Diego City Council.

Council members unanimously approved one-year contracts with community parking districts in Mid-City and Downtown, but opted to scale back their pact with Uptown Partnership after a critical grand jury report.

In calling for the three-month contract, instead of one year, Councilman Todd Gloria acknowledged what has become a “constant drumbeat of dissatisfaction” from the community. He challenged the wisdom of turning away from the organization as it works through the challenges.

“I realize not approving the contract today means they close their doors indefinitely tomorrow. That’s not acceptable,” Gloria said. “I continue to believe that the partnership can be beneficial to the residents and businesses of uptown and don’t want to see it dissolved.”

The county grand jury found that Uptown Partnership spent three times more on operating expenses than on projects since incorporating in 1999. The nonprofit dedicated $3.2 million to operating expenses and $1.1 million to projects, according to the report released in May. It has socked away about $4.3 million in reserves.

The organization has created 40 to 50 parking spaces and is in discussions to add as many as 90 more over two years.

The grand jury suggested the city consider diverting money from parking meters to its general fund. Uptown Partnership receives 45 percent of the $1.9 million generated annually by area parking meters, with the city using the balance for parking and traffic programs.

Anne Rast, president of Uptown Partnership’s board of directors, said her colleagues have made strides to enhance community involvement and share in the governing process. Among their reforms were increasing the board’s size, setting term limits and establishing a mechanism to elect directors through neighborhood groups and council districts.

“All of these improvements have made us a better and stronger organization,” she said.

A parking committee was added in Hillcrest to generate more involvement and identify projects to the partnership board. Also, the partnership’s proposed budget was developed with input from nearly 20 public meetings, including a recent hearing before a City Council committee.

But some on the council indicated their patience was wearing thin.

“Either the current management is going to fix these problems or we’re going to have to make dramatic changes,” Councilwoman Marti Emerald said.

Leo Wilson, chairman of Uptown Planners and the Bankers Hill/Park West Community Association, implored the council to scrap the 2010-2011 contract and direct city staff to reconvene the organization as a more fiscally accountable body.

He criticized plans in the contract to hike the executive director’s salary from $75,000 to $79,500 for doing what amounted to part-time work. The partnership’s office is open 23 ½ hours a week, according to the hours posted on the door.

Wilson also cited several complaints against the partnership filed with the state’s election and campaign finance watchdog.

“Someone has to pull the trigger and say, ‘Let’s reform the Uptown Partnership. Let’s get a good board that is representative and makes the community happy,’” he said. “We’re not there yet and more must be done.”

The council instructed the board to carry out the reforms before bringing the contract back.

“What we need here is a short leash and we need to see action,” Councilman Carl DeMaio said.